Well it’s been a long time coming but today sees the government take some real action to solve the Northern Rock problem. Unfortunately the nationalisation of Northern Rock seems to be a case of ‘too little, too late’.
Alastair Darling has rejected bids from Virgin Money on the grounds that it protects taxpayers’ interests.
Shareholders however are considering legal action against the government as their shares become suspended (90p on Friday). Though there is talk of compensation for them many doubt they’ll really be making their money back.
And it could be bad news for Northern Rock employees as the new Executive Chairman, Ron Sandler (who is being paid £90,000 a month for his efforts), is expected to announce heavy job losses.
Everybody’s got an opinion on Darling’s decision - what's yours? Or, if you're still not sure, here are some interesting articles that are worth a read...
Take a look at the Times’ piece ‘Absolutely, incredibly, utterly wrong’ – no prizes for guessing columnist Anatole Kaletsky’s stance! Or see what you think of the FT's claim that ‘Nationalising Northern Rock was the right move’ which looks at the next steps the government will need to take.
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